Cashew processors in Ivory Coast are facing a critical funding shortfall, jeopardizing the government’s efforts to boost local processing capacity. Despite receiving raw cashew nuts from suppliers, processors are not receiving the promised funding from the state-owned Banque Nationale d’Investissement (BNI) to pay for the nuts, causing stocks to pile up and threatening production.
Ivory Coast, the world’s top cashew producer, has been implementing various measures to support local processors against competition from Asian multinationals that dominate the industry. These measures include subsidies, tax breaks, and exclusive purchasing rights during the first two months of the cashew season. A key part of this strategy is a scheme where the sector regulator CCA provides 20% of processors’ raw material needs at the start of the season, financed by BNI.
However, processors report that the BNI funding has not materialized, leaving them in a difficult position. “We are receiving raw nuts from suppliers, but there is no funding to pay for them. The bank doesn’t support us,” said one processor based in Bouake, the heart of the country’s cashew processing industry.
This funding shortfall could have significant consequences for the Ivorian cashew sector. Processors may be forced to slow down or halt production, leading to job losses and impacting the country’s goal of processing 50% of its cashew crop locally by 2030. Furthermore, it could undermine the government’s efforts to make local processors more competitive against established multinational players.
The situation also raises concerns about the long-term sustainability of the government’s support scheme. If funding issues persist, it could discourage investment in the local cashew processing industry and hinder its growth potential. The Ivorian cashew sector, and the thousands of farmers and workers who depend on it, now face significant uncertainty.